HONGMAO GARDEN
25. Aug. 2025
· Market Activity
· Company Dynamics
· Product Updates
Weekly Market Dynamics
1️⃣ German Tax Authority Tightens B2B Cross-Border Compliance
Update: German tax authorities issued warning letters reminding sellers that in addition to VAT returns, they must also file the ZM declaration for cross-border B2B zero-rated transactions. Errors, delays, or omissions may result in fines up to €25,000 and even tax audits.
Impact: Non-compliance could lead to penalties, forced reclassification as B2C transactions with 19% VAT back-payments, and potential platform account suspension.
2️⃣ eBay Feedback & Seller Protection Policy Changes (Effective September)
Update: Starting September, eBay will automatically give positive feedback if tracked items arrive on time and buyers do not respond within 7 days. Negative return-related feedback will no longer be auto-removed. New seller protections include risk order alerts, automatic fund release after delivery, and AI tools to support buyer communication.
Impact: Sellers benefit from more automatic positive feedback and transaction security, but must handle returns more carefully as negative ratings become harder to remove.
3️⃣ U.S. Expands Steel & Aluminum Tariffs (Effective February 2024)
Update: The U.S. government announced an expansion of the 50% steel and aluminum tariffs, adding about 60 processed metal products from Japan (e.g., steel pipes, bolts). This measure is aimed at preventing tariff circumvention via third countries.
Impact: While mainly targeting Japan, the policy may indirectly affect Chinese products routed through third countries, further straining global supply chains.
4️⃣ Study: German Consumer Loyalty Driven by Price, Service & Quality
Update: A Scayle survey found 54% of German consumers switch brands due to price increases, 43% due to poor service, and 39% due to unstable quality. Younger buyers value sustainability and personalization, while Baby Boomers focus mainly on price.
Impact: Price–value balance and consistent product quality remain the most critical factors influencing brand loyalty in Germany.
5️⃣ German Retailers Increasing Spend on Influencer Marketing
Update: According to Bitkom, German retailers now allocate an average of €66,860 annually (about 7% of ad budgets) to influencer marketing, with some spending in the millions. 64% see it as effective, and 88% reported reaching new audiences.
Impact: Influencer marketing is becoming a mainstream tool in German retail, with proven impact in both B2C and B2B segments, including DIY and garden sectors.
🏢 Company Update – CBAM Focus
This quarter, our TÜV-certified team has successfully completed the quarterly CBAM Communication calculations for our product categories.
This ensures that our data on carbon emissions and compliance factors is accurate, transparent, and fully aligned with EU reporting requirements.
It reflects our commitment to not only high-quality garden storage solutions, but also to sustainable and future-proof business practices.
To help our partners and buyers better understand CBAM and its impact on procurement, our CEO Catrina Long has published two in-depth articles:
🔗 CBAM is Coming – Guide for Outdoor Product Buyers: Compliance, Cost Reduction & Practical Checklist 👉 Read here
🔗 Navigating CBAM: How European Buyers Can Find Future-Proof Garden Product Factories in China 👉 Read here
These resources provide practical guidance for European procurement managers, including compliance strategies, cost optimization, and criteria for selecting sustainable suppliers.
🌱 New Product Highlight – Patented Flower Box with Tray
This week, we’re excited to share the expanded applications of our Patented Flower Box with Tray (Model: HPS-H502).
✨ Key Features:
Capacity 12L | Load Capacity 20KG – durable and practical.
Innovative Drainage System – built-in water holes with removable tray to prevent mess and keep plants healthy.
Universal Fit (65cm hook width) – suitable for all standard railings.
Durable Quality – REACH certified powder coating, 1000H UV resistance, anti-crack, easy to clean.
Easy Installation – shipped fully assembled, quick to mount on fences, balconies, or windows.
🌍 Now with More Versatile Applications:
Terrace | Balcony | Fence | Nursery | Commercial District | Street From private homes to commercial spaces, our flower boxes are designed to bring greenery everywhere.
👉 Learn more: Raised Garden Bed